Is it cheaper to form an LLC in Hawaii or Massachusetts?

Hawaii is cheaper at formation ($51) than Massachusetts ($500). Ongoing costs are also different: $115 vs $600 per year. Total over three years: $396 vs $2,300.

Can I form an LLC in Hawaii if I live in Massachusetts?

Yes, but your Massachusetts business will almost certainly need to register as a foreign LLC in Massachusetts too, which means paying Massachusetts's foreign registration fee and any ongoing Massachusetts obligations on top of the Hawaii ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Hawaii vs Massachusetts?

Hawaii online: 5 business days; Massachusetts online: 2 business days. Hawaii offers paid expedite from $25. Massachusetts offers paid expedite from $20.

Which state has lower taxes for an LLC, Hawaii or Massachusetts?

Hawaii: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Massachusetts: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Hawaii and Massachusetts both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Hawaii or Massachusetts to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Hawaii vs Massachusetts LLC comparison

Hawaii charges $51 to form an LLC; Massachusetts charges $500. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Hawaii runs about $1,904 less in total state fees than Massachusetts. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, Massachusetts typically clears standard online filings faster than Hawaii. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Hawaii $51

Massachusetts $500

Hawaii saves $449

Year 1 total estimate

Hawaii $166

Massachusetts $1,100

Hawaii saves $934

Ongoing per year

Hawaii $115

Massachusetts $600

Hawaii saves $485

3-year total

Hawaii $396

Massachusetts $2,300

Hawaii saves $1,904

Key differences at a glance

Hawaii costs $449 less to form ($51 vs $500).
Hawaii is $485 per year cheaper to maintain ($115 vs $600).

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Hawaii

No state sales tax

Both states

Online filing
Paid expedited tier
No entity-level franchise or LLC tax
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Hawaii Massachusetts

Year 1

$166

$1,100

Year 2

$281

$1,700

Year 3

$396

$2,300

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Hawaii, business operates there No foreign LLC registration needed. You pay Hawaii fees only.	$166	$115	$396
You live in Massachusetts, business operates there No foreign LLC registration needed. You pay Massachusetts fees only.	$1,100	$600	$2,300
Non-resident forming in Hawaii with operations elsewhere You pay Hawaii's fees plus a typical home-state foreign LLC registration of about $200 per year.	$366	$315	$996
Non-resident forming in Massachusetts with operations elsewhere You pay Massachusetts's fees plus a typical home-state foreign LLC registration of about $200 per year.	$1,300	$800	$2,900

Hawaii vs Massachusetts: full comparison

Dimension	Hawaii	Massachusetts
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	5 business days	2 business days
Expedited option Paid fast-track filing	$25	$20
Annual report Required in addition to tax	Required, $15	Required, $500
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$51	$500
State sales tax General statewide rate	None	6.3%

Taxes in Hawaii and Massachusetts

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Hawaii tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.4%.

Massachusetts tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 8.0%.

Ongoing compliance

The recurring filings each state requires after formation.

Hawaii

Annual report $15, due on your anniversary month. Registered agent required in Hawaii.

Massachusetts

Annual report $500, due on your anniversary month. Registered agent required in Massachusetts.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Hawaii

Check business-name availability on the Hawaii entity search.
Appoint a registered agent with a physical Hawaii street address.
File Articles of Organization for Limited Liability Company (Form LLC-1) for $51.
Wait for approval. Online typically 5 business days. Paid expedite from $25.
Adopt an operating agreement (recommended, not required by Hawaii statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $15 when it comes due.

Massachusetts

Check business-name availability on the Massachusetts entity search.
Appoint a registered agent with a physical Massachusetts street address.
File Certificate of Organization (Form 156C §12) for $500.
Wait for approval. Online typically 2 business days. Paid expedite from $20.
Adopt an operating agreement (recommended, not required by Massachusetts statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $500 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Hawaii and Massachusetts (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Hawaii or Massachusetts does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Hawaii Department of Commerce and Consumer Affairs - Business Registration Division

Website: cca.hawaii.gov/breg
Phone: (808) 586-2727
Email: breg@dcca.hawaii.gov
Mail: Business Registration Division, Department of Commerce and Consumer Affairs, P.O. Box 40, Honolulu, HI 96810
Office: 335 Merchant Street, Room 201, Honolulu, HI 96813
Hours: 7:45 AM to 4:30 PM Hawaii-Aleutian Standard Time, Monday to Friday

Secretary of the Commonwealth of Massachusetts, Corporations Division

Website: www.sec.state.ma.us/divisions/corporations/corporations.htm
Phone: (617) 727-9640
Email: corpinfo@sec.state.ma.us
Mail: Secretary of the Commonwealth, Corporations Division, One Ashburton Place, Room 1717, Boston, MA 02108
Office: McCormack Building, One Ashburton Place, 17th Floor, Boston, MA 02108
Hours: 8:45 AM to 5:00 PM Eastern, Monday to Friday

Hawaii Department of Taxation

Website: tax.hawaii.gov
Phone: (808) 587-4242
Mail: Department of Taxation, P.O. Box 259, Honolulu, HI 96809-0259
Office: 830 Punchbowl Street, Honolulu, HI 96813-5094
Hours: 7:45 AM to 4:00 PM Hawaii-Aleutian Standard Time, Monday to Friday

Massachusetts Department of Revenue

Website: www.mass.gov/orgs/massachusetts-department-of-revenue
Phone: (617) 887-6367
Mail: Massachusetts Department of Revenue, P.O. Box 7010, Boston, MA 02204
Office: 100 Cambridge Street, Boston, MA 02114
Hours: 9:00 AM to 4:00 PM Eastern, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Hawaii or Massachusetts?

Hawaii is cheaper at formation ($51) than Massachusetts ($500). Ongoing costs are also different: $115 vs $600 per year. Total over three years: $396 vs $2,300.
Can I form an LLC in Hawaii if I live in Massachusetts?

Yes, but your Massachusetts business will almost certainly need to register as a foreign LLC in Massachusetts too, which means paying Massachusetts's foreign registration fee and any ongoing Massachusetts obligations on top of the Hawaii ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Hawaii vs Massachusetts?

Hawaii online: 5 business days; Massachusetts online: 2 business days. Hawaii offers paid expedite from $25. Massachusetts offers paid expedite from $20.
Which state has lower taxes for an LLC, Hawaii or Massachusetts?

Hawaii: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Massachusetts: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Hawaii and Massachusetts both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Hawaii or Massachusetts to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

HawaiiOpen Hawaii LLC guide →
MassachusettsOpen Massachusetts LLC guide →

More Hawaii and Massachusetts comparisons

More Hawaii vs ...

More Massachusetts vs ...

Sources

Online filing portal: cca.hawaii.gov/breg/ · verified April 21, 2026
Hawaii BREG is launching a replacement business registration portal on April 27, 2026 (the legacy hbe.ehawaii.gov system went offline April 20). The new portal URL is not yet published. Until we can confirm the new direct URL, we point filers at the BREG division homepage, which lists the live online filing entry point. Re-verify once the new portal URL is announced.
Business name search: cca.hawaii.gov/business-check/ · verified April 21, 2026
DCCA Business Check is Hawaii's current live business-name search surface and remains the right entry point regardless of the BREG portal migration.
Filing fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Business Registration Division Form Fee Schedule (Rev. 12/2022): Limited Liability Company Articles of Organization filing fee = $50.00. A $1.00 State Archives preservation fee (HRS Section 94-8) is also imposed on permanent documents collected by BREG, bringing the day-one total to $51.00.
Expedited filing: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Form Fee Schedule: Expedited Review Fee = $25.00 (additional) for most LLC filings including Articles of Organization. Expedited online filings are typically processed in 1 to 3 business days per BREG guidance.
Foreign LLC registration fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Foreign LLC Application for Certificate of Authority filing fee = $50.00 plus $1.00 State Archives preservation fee = $51.00 day-one cost.
Operating agreement requirement: law.justia.com/codes/hawaii/title-23a/chapter-428/section-428-103/ · verified April 21, 2026
HRS Section 428-103 (Effect of operating agreement; nonwaivable provisions) permits but does not require an operating agreement. Hawaii Uniform Limited Liability Company Act does not require a written operating agreement.
Publication requirement: cca.hawaii.gov/breg/registration/dllc/ · verified April 21, 2026
Hawaii BREG LLC registration page and HRS Chapter 428 contain no publication requirement for LLCs.
Annual report fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Annual Report (Domestic/Foreign) LLC filing fee = $15.00 per Hawaii DCCA Form Fee Schedule. Due during the calendar quarter containing the LLC's registration anniversary per HRS Section 428-210. Late fee $10 per year. Authority confirmed via HRS Section 428-210.
Franchise tax: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii Department of Taxation: no franchise tax on LLCs. The General Excise Tax (GET) is a gross receipts tax, not a franchise tax. LLCs owe GET on business activity, not a separate entity-level franchise or privilege tax.
Corporate income tax rate: taxfoundation.org/location/hawaii/ · verified April 21, 2026
Hawaii corporate income tax: 4.4% on income up to $25,000, 5.4% on $25,001 to $100,000, 6.4% on income above $100,000. Record top marginal rate 6.4% as the income-only max. LLCs that default to pass-through do not owe this tax.
Sales tax rate: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii has no retail sales tax. The General Excise Tax (GET) at 4% state plus 0.5% county surcharge is a gross receipts tax on the business. Recorded salesTaxRate as 0 per schema convention (statewide retail sales rate). GET nuance captured in taxes.notes.
Business name search: hbe.ehawaii.gov/documents/search.html · verified April 21, 2026
Hawaii Business Express (HBE) document and entity search. Confirm name availability before filing. Note: HBE is being replaced by a new BREG portal on April 27, 2026; URLs may update.
Certificate of Formation form: files.hawaii.gov/dcca/breg/registration/forms/llc-1.pdf · verified April 21, 2026
Official Form LLC-1 Articles of Organization for Hawaii LLC, published by DCCA Business Registration Division. Can be filed online via HBE, by mail, fax, email, or in person.
Filing fee: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Secretary of the Commonwealth Corporations Division filing fee schedule: domestic LLC Certificate of Organization = $500. Online and fax filings carry an automatic $20 expediting surcharge, yielding a $520 effective fee for electronic filings.
Expedited filing: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Massachusetts automatically adds a $20 expediting surcharge to electronic (online or fax) filings and processes them ahead of mail submissions. This is the cheapest expedited tier. Same-day service requires hand-delivery at the Boston office before the cutoff. Online filings typically clear in 1–2 business days.
Certificate of Formation form: www.sec.state.ma.us/divisions/corporations/filing-by-subject/limited-l… · verified April 21, 2026
Massachusetts publishes a fillable Certificate of Organization PDF (form reference 'Form 156C §12' a/k/a c156c512d) for paper filers, with a parallel online filing flow through the Corporations Division portal.
Online filing portal: corp.sec.state.ma.us/corpweb/loginsystem/externallogin.aspx · verified April 21, 2026
Massachusetts Corporations Division online filing portal (external login). Used for Certificate of Organization, annual report, and amendments.
Business name search: corp.sec.state.ma.us/corpweb/CorpSearch/CorpSearch.aspx · verified April 21, 2026
Massachusetts Corporations Division business entity search. Supports lookup by entity name, individual name, entity ID, or filing number.
Operating agreement requirement: malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter156C · verified April 21, 2026
Massachusetts General Laws Chapter 156C (Limited Liability Company Act). §2(9) defines operating agreement as 'any written or oral agreement of the members'; §9 requires LLCs to keep any written operating agreement at the principal office but does not require one to exist. Default Chapter 156C rules fill gaps.
Publication requirement: www.sec.state.ma.us/divisions/corporations/filing-by-subject/limited-l… · verified April 21, 2026
Massachusetts does not require newspaper publication for LLC formation. The Corporations Division LLC information page describes no such obligation, and M.G.L. c. 156C does not impose one.
Foreign LLC registration fee: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Corporations Division fee schedule: foreign LLC Application for Registration = $500 (plus $20 electronic filing surcharge if filed online/fax).
Annual report fee: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Corporations Division fee schedule: LLC annual report = $500 (paper), $520 online/fax including the $20 expediting surcharge. Due by the anniversary of the original Certificate of Organization under M.G.L. c. 156C §12.
Franchise tax: www.mass.gov/info-details/massachusetts-dor-corporate-excise-tax-guide… · verified April 21, 2026
Massachusetts has no franchise tax on LLCs treated as pass-through entities. The Corporate Excise applies only when an LLC elects C-corp treatment; it is an 8.00% income component plus $2.60 per $1,000 of tangible property or net worth, with a $456 minimum excise. Not a franchise tax in the traditional sense; applies = false for the pass-through default.
Corporate income tax rate: www.mass.gov/info-details/massachusetts-dor-corporate-excise-tax-guide… · verified April 21, 2026
Massachusetts Corporate Excise net income tax component = 8.00% under M.G.L. c. 63 §39. Reported as income-only to match Delaware's convention; the companion $2.60-per-$1,000 net-worth/property measure is documented in taxes.notes / franchiseTax.notes.
Sales tax rate: www.mass.gov/info-details/massachusetts-tax-rates · verified April 21, 2026
Massachusetts statewide sales and use tax rate is 6.25% under M.G.L. c. 64H §2. No local sales taxes are imposed; separate 6.25% use tax on out-of-state purchases and local-option meals (0.75%) and rooms (up to 6%) taxes apply to specific categories only.

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